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AUTO POLICY

Form 96110 IA(10/14)

version 10

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INSURING AGREEMENT ................................................................................. 1
GENERAL DEFINITIONS ................................................................................. 1

PART lLIABILITY TO OTHERS

Insuring Agreement ......
Additional Definition
Additional Payments.....
Exclusions ..........
Limits of Liability.
Financial Responsibility L a w s
Other Insurance ...............
Out-ofState Coverage.
Right of Direct Action ........

PART IIMEDICAL PAYMENTS COVERAGE

Insuring Agreement ......
Additional Definitions...
Exclusions ..............
Limits of Liability.....
Unreasonable or Unnecessary Medical Expenses ..
Other Insurance
PART IIIUNINSUREDIUNDERINSURED MOTORIST COVERAGE
Insuring AgreementUninsured Motorist Coverage ...................................9
Insuring AgreementUnderinsured Motorist Coverage.
Additional Definitions...
Exclusions ..........
Limits of Liability.....
Other Insurance ........................................................................................13

PART l V D A M A G ETOA VEHICLE

Insuring AgreementCollision Coverage ......
Insuring AgreementComprehensive Coverage
Insuring AgreementAdditional Custom Parts or
Equipment Coverage .............................................................................14
Insuring AgreementRental Reimbursement Coverage...
Insuring AgreementLoan/Lease Payoff Coverage
Insuring AgreementPet Injury Coverage.
Additional Definitions...
Exclusions ..........
Limits of Liability.
Payment of Loss.....

NoBenefit to Bailee ..................................................................................19

IOWA AUTO POLICY

Loss Payable Clause .............

Other Sources of Recovery
Appraisal ...............................

PART VROADSIDE ASSISTANCE COVERAGE

Insuring Agreement.....
Additional Definitions
Exclusions ...................
Unauthorized Service Provider.
Other Insurance ...........................

INSURING AGREEMENT

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GENERAL DEFINI110NS

PART VlDUTIES INCASE OFANACCIDENT ORLOSS...........................22

PART VIIGENERAL PROVISIONS
Policy Period and Territory
Changes.....
Duty to Report anges
Settlement of Claims .........
Terms of Policy Conformed to S t a t u t e s
Transfer of Interest ...................
Fraud or Misrepresentation
Payment of Premium and Fees
Cancellation ..
Cancellation Re un
Nonrenewal ...........,.

Automatic Termination.
Legal Action Against Us.....
Our Rights to Recover Paymen
Joint and Individual Interests.

Bankruptcy ...............................

In return for your payment of the premium, we agree to insure you subject to all the
terms, conditions and limitations of this policy. We will insure you for the coverages
and the limits of liability shown on this policys declarations page.Your policy consists
of the policy contract, your insurance application, the declarations page, and all en
dorsements to this policy.

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The following definitions apply throughout the policy. Defined terms are printed in bold
face type and have the same meaning whether in the singular, plural, or any other form.
1. Additional auto means an auto you become the owner of during the policy pe
riod that does not permanently replace an auto shown on the declarations page
if:
a. we insure all other autos you own;
b. the additional auto is not covered by any other insurance policy;
c. you notify us within 30 days of becoming the owner of the additional auto;
and
d. you pay any additional premium due.
Anadditional auto will have the broadest coverage we provide forany auto shown
on the declarations page. If you ask us to insure an additional auto more than
30 days after you become the owner, any coverage we provide will begin at the
time you request coverage.
2. Auto means a land motor vehicle:
of the private passenger, pickup body, or cargo van type;
designed for operation principally upon public roads;
with at least four wheels; and
with a gross vehicle weight rating of 12,000 pounds or less, according to the
manufacturers specifications.
However, "auto" does not include step-vans, parcel delivery vans, orcargo cutaway
vans or other vans with cabs separate from the cargo area.
3. Auto business means the business of selling, leasing, repairing, parking, storing,
sen/icing, delivering or testing vehicles.
4. Bodily injury means bodily harm, sickness, or disease, including death that re
sults from bodily harm, sickness, or disease.
5. Covered auto" means:
a. any auto or traller shown on the declarations page for the coverages appli
cable to that auto or trailer;
b. any additional auto;
c. any replacement auto; or
d. a trailer owned by you.
6.
rations page means the document showing your coverages, limits of li
ability, covered autos, premium, and other policyrelated information.The declara
tions page may also be referred to as the Auto Insurance Coverage Summary.
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9.

10.

11.

12.

13.

14.

Occupying means in, on, entering or exiting.

Property damage" means physical damage to, destruction of, or loss of use of,
tangible property.
Rated resident means a person residing in the same household as you at the
time of the loss who is not a relative, but only if that person is both:
a. listed in the Drivers and household residents section on the declarations
page; and
b. not designated as either an Excluded or a List Only driver.
"Relative" means a person residing in the same household as you, and related to
you by blood, marriage or adoption, and includes a ward, stepchild, or foster child.
Your unmarried dependent children temporarily away from home will qualify as a
relative if they intend to continue to reside in your household.
Replacement auto means an auto that permanently replaces an auto shown
on the declarations page. A replacement auto will have the same coverage as
the auto it replaces if the replacement auto is not covered by any other insurance
policy. However, if the auto being replaced had coverage under Part lVDamage
To A Vehicle, such coverage will apply to the replacement auto only during the first
30 days after you become the owner unless you notify us within that 30day period
that you want us to extend coverage beyond the initial 30 days. if the auto being
replaced did not have coverage under Part |V-DamageTo A Vehicle, such cover
age may be added, but the replacement auto will have no coverage under Part IV
until you notify us of the replacement auto and ask us to add the coverage.
Trailer means a non-motorized trailer, including a farm wagon or farm implement,
designed to be towed on public roads by an auto and not being used:
a. for commercial purposes;
b. as an office, store, or for display purposes; or
c. as a passenger conveyance.
We, us and our mean the underwriting company providing the insurance, as
shown on the declarations page.
You and your" mean:
a. a person shown as a named insured on the declarations page; and
b. the spouse of a named insured if residing in the same household at the time of
the loss.

PART lLIABILITYT0 OTHERS

INSURING AGREEMENT
If you pay the premium for this coverage, we will pay damages for bodily injury and
property damage for which an insured person becomes legally responsible because
of an accident.

Damages include prejudgment interest awarded against an insured person.

We will settle or defend, at our option, any claim for damages covered by this Part I.

ADDI'I10NAL DEFINITION
When used in this Part I:
Insured person" means:
a. you, a relative, or a rated resident with respect to an accident arising out of the
ownership, maintenance or use of an auto or a trailer;
b. any person with respect to an accident arising out of that persons use of a covered
auto with the permission of you, a relative, or a rated resident;
c. any person or organization with respect only to vicarious liability for the acts or
omissions of a person described in a. or b. above; and
d. any Additional Interest" shown on the declarations page with respect only to its
liability for the acts or omissions of a person described in a. or b. above.
ADDITIONAL PAYMENTS

in addition to our limit of liability, we will pay for an insured person:

1. all expenses we incur in the settlement of any claim or defense of any lawsuit;
2. interest accruing after entry of judgment, until we have paid, offered to pay, or de
posited in court, that portion of the judgment which does not exceed our limit of
liability This does not apply if we have not been given notice of suit or the opportu
nity to defend an insured person;
3. the premium on any appeal bond or attachment bond required in any lawsuit we
defend. We have no duty to purchase a bond in an amount exceeding our limit of
liability, and we have no duty to apply for or furnish these bonds;
4. up to $250 for a bail bond required because of an accident resulting in bodily in
jury or property damage covered under this Part i. We have no duty to apply for
or furnish this bond; and
5. reasonable expenses, including loss of earnings up to $200 per day, incurred at
our request.
EXCLUSIONSREADTHE FOLLOWING EXCLUSIONS CAREFULLY. IF AN EX
CLUSION APPLIES, COVERAGE WILL NOT BE AFFORDED UNDERTHIS PART I.

Coverage under this Part I, including our duty to defend, will not apply to any insured
person for:
1. bodily injury or property damage arising out of the ownership, maintenance or
use of any vehicle or trailer while being used:
a. to carry persons or property for compensation or a fee; or
b. for retail or wholesale delivery, including, but not limited to, the pickup, transport
or delivery of magazines, newspapers, mail or food.
This exclusion does not apply to shared-expense car pools;
2. any liability assumed under any contract or agreement by you, a relative, or a
rated resident;
3. bodily injury to an employee of that insured person arising out of or within the
course of employment. This exclusion does not apply to domestic employees if
benefits are neither paid nor required to be provided under workers compensation,
disability benefits, or similar laws;

10.

11.

12.

13.

14.

15.

16.
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bodily injury or property damage arising out of an accident involving any vehicle
while being maintained or used by a person while employed or engaged in any
auto business.This exclusion does not apply to you, a relative, a rated resident,
or an agent or employee of you, a relative, or a rated resident, when using a
covered auto;
bodily injury or property damage resulting from, or sustained during practice or
preparation for:
a. any prearranged or organized racing, stunting, speed or demolition contest or
activity; or
b. any driving activity conducted on a permanent or temporary racetrack or race
course;
bodily injury or property damage due to a nuclear reaction or radiation;
bodily injury or property damage for which insurance:
a. is afforded under a nuclear energy liability insurance contract; or
b. would be afforded under a nuclear energy liability insurance contract but for its
termination upon exhaustion of its limit of liability;
any obligation for which the United States Government is liable under the Federal
Tort Claims Act;
bodily injury or property damage caused by an intentional act of that insured
person, or at the direction of that Insured person, even if the actual injury or dam
age is different than that which was intended or expected;
property damage to any property owned by, rented to, being transported by, used
by, or in the charge of that insured person. This exclusion does not apply to a
rented residence or a rented garage;
bodily injury to you or a relative;
bodily injury or property damage arising out of the ownership, maintenance or
use of any vehicle owned by you or furnished or available for your regular use,
other than a covered auto for which this coverage has been purchased;
bodily injury or property damage arising out of the ownership, maintenance or
use of any vehicle owned by a relative or a rated resident or furnished or available
for the regular use of a relative or a rated resident, other than a covered auto for
which this coverage has been purchased. This exclusion does not apply to your
maintenance or use of such vehicle;
bodily injury or property damage arising out of your, a relatives, or a rated
residents use of a vehicle, other than a covered auto, without the permission of
the owner of the vehicle or the person in lawful possession of the vehicle;
bodily injury or property damage arising out of the use of a covered auto while
leased or rented to others or given in exchange for any compensation. This exclu
sion does not apply to the operation of a covered auto by you, a relative, or a
rated resident;
punitive or exemplary damages; or
bodily injury or property damage caused by, or reasonabty expected to result
from, a criminal act or omission of that insured person. This exclusion applies
regardless of whether that insured person is actualty charged with, or convicted
of, a crime. For purposes of this exclusion, criminal acts or omissions do not include
traffic violations.

UMITS OF LIABILITY
The limit of liability shown on the declarations page for liability coverage is the most we
will pay regardless of the number of:
claims made;
covered autos;
insured persons;

lawsuits brought;
vehicles involved in the accident; or
premiums paid.
If your declarations page shows a split limit:
1. the amount shown for each persor'l is the most we will pay for all damages due to
bodily injury to one person resulting from any one accident;
2. subject to the each persorf limit, the amount shown for each accident" is the most
we will pay for all damages due to bodily injury sustained by two or more persons
in any one accident; and
3. the amount shown for property damage is the most we will pay for the total of all
property damage resulting from any one accident.

The each persorf limit of liability applies to the total of all claims made for bodily injury
to a person and all claims of others derived from such bodily injury, including, but not
limited to. loss of society, loss of companionship, loss of services, loss of consortium,
and wrongful death.

If the declarations page shows that combined single limit" or CSL applies, the
amount shown is the most we will pay for the total of all damages resulting from any
one accident. However, without changing this limit of liability,we will comply with any law
that requires us to provide any separate limits.
No one is entitled to duplicate payments for the same elements of damages.
Any payment to a person underthis Part I will be reduced by any payment to that person
under Part lllUninsured/Underinsured Motorist Coverage.

We will not pay under this Part i any expenses paid or payable under Part llMedical
Payments Coverage.
If multiple auto policies issued by us are in effect for you, we will pay no more than the
highest limit of liability for this coverage available under any one policy.
An auto and attached trailer are considered one auto. Therefore, the limits of liability
will not be increased for an accident involving an auto that has an attached trailer.

FINANCIAL RESPONSIBILITY LAWS

When we certify this policy as proof of financial responsibility, this policy will comply with
the law to the extent required. The insured person must reimburse us if we make a
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payment that we would not have made if this policy was not certified as proof of financial
responsibility.
OTHER INSURANCE

if there is any other applicable liability insurance or bond, we will pay only our share of
the damages. Our share is the proportion that our limit of liability bears to the total of all
applicable limits. However, any insurance we provide for a vehicle or trailer, other than a
covered auto, will be excess over any other collectible insurance, self-insurance, or bond.

OUT-OF-STATE COVERAGE
If an accident to which this Part I applies occurs in any state, territory or possession of
the United States of America or any province or territory of Canada, other than the one
in which a covered auto is principally garaged, and the state, province, territory or pos
session has:
1. a financial responsibility or similar law requiring limits of liability for bodily injury
or property damage higher than the limits shown on the declarations page, this
policy will provide the higher limits; or
2. a compulsory insurance or similar law requiring a non-resident to maintain insur
ance whenever the non-resident uses an auto in that state, province, territory or
possession, this policy will provide the greater of:
a. the required minimum amounts and types of coverage; or
b. the limits of liability under this policy.
RIGHT OF DIRECT ACTION
If execution of a judgment against an insured person is returned unsatisfied, any per
son entitled to payment of damages covered by this Part I may, within the time limit
specified by Iowa Code Section 516.3, as amended, maintain an action against us for
the amount of the judgment that does not exceed our limits of liability under this Part I.

PART II-MEDICAL PAYMENTS COVERAGE

INSURING AGREEMENT

if you pay the premium for this coverage, we will pay the reasonable expenses incurred
for necessary medical services received within three years from the date of a motor
vehicle accident because of bodily injury:
1. sustained by an insured person; and
2. caused by that motor vehicle accident.
We, or someone on our behalf, will determine:
1. whether the expenses for medical services are reasonable; and
2. whether the medical services are necessary.
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ADDITIONAL DEFINI110NS

When used in this Part II:

1. Insured person" means:
a. you, a relative, or a rated resident:
(i) while occupying an auto; or
(ii) when stmck by a motor vehicle or a trailer while not occupying a self
propelled motorized vehicle; and
b. any other person while occupying a covered auto with the permission of
you, a relative, or a rated resident.
2. Medical services means medical, surgical, dental, x-ray, ambulance, hospital,
professional nursing, and funeral services, and includes the cost of eyeglasses,
hearing aids, pharmaceuticals, orthopedics, and prosthetic devices.
3. Motor vehicle" means a land motor vehicle designed for use principally on public
roads.
EXCLUSIQNREADTHE FOLLOWING EXCLUSIONS CAREFULLY. IFAN EX
CLUSION APPIJES, COVERAGE WILL NOT BE AFFORDED UNDERTHIS PART II.

Coverage under this Part II will not apply to bodily injury:

1. sustained by any person while occupying a covered auto while it is being used:
a. to carry persons or property for compensation or a fee; or
b. for retail or wholesale delivery, including, but not limited to, the pickup, transport
or delivery of magazines, newspapers, mail or food.
This exclusion does not apply to shared-expense car pools;
2. arising out of an accident involving a vehicle while being maintained or used by a
person while employed or engaged in any auto business.This exclusion does not
apply to you, a relative, a rated resident, or an agent or employee of you, a rela
tive, or a rated resident, when using a covered auto;
3. to any person resulting from, or sustained during practice or preparation for:
a. any prearranged cr organized racing, stunting, speed or demolition contest or
activity; or
b. any driving activity conducted on a permanent or temporary racetrack or race
course;
4. due to a nuclear reaction or radiation;
5. for which insurance:
a. is afforded under a nuclear energy liability insurance contract; or
b. would be afforded under a nuclear energy liability insurance contract but for its
termination upon exhaustion of its limit of liability;
6. for which the United States Government is liable under the Federal Tort Claims Act;
I
sustained by any person while occupying any vehicle or trailer while located for
use as a residence or premises;
if workers compensation benefits are available for the bodily injury;
sustained by any person while occupying or when struck by any vehicle owned by
you or furnished or available for your regular use, other than a covered auto for
which this coverage has been purchased;
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10. sustained by any person while occupying or when struck by any vehicle owned
by a relative or a rated resident or furnished or available for the regular use of a
relative or a rated resident, other than a covered auto for which this coverage
has been purchasedThis exclusion does not apply to you;
11. to you, a relative, or a rated resident, while occupying any vehicle, other than a
covered auto, without the permission of the owner of the vehicle or the person in
lawful possession of the vehicle;
12. to any person while occupying a covered auto while leased or rented to others
or given in exchange for any compensation. This exclusion does not apply to the
operation of a covered auto by you, a relative, or a rated resident;
13. caused directly or indirectly by:
a. war (declared or undeclared) or civil war;
b. warlike action by any military force of any government, sovereign or other au
thority using military personnel or agents. This includes any action taken to
hinder or defend against an actual or expected attack; or
c. insurrection, rebellion, revolution, usurped power, or any action taken bya gov
ernmental authority to hinder or defend against any of these acts;
14. caused direme or indirectly by:
a. any accidental or intentional discharge, dispersal or release of radioactive,
nuclear, pathogenic or poisonous biological material; or
b. any intentional discharge, dispersal or release of chemical or hazardous mate
rial for any purpose other than its safe and useful purpose; or
15. caused by, or reasonably expected to result from, a criminal act or omission of an
insured person.This exclusion applies regardless of whether the insured person
is actually charged with, or convicted of, a crime. For purposes of this exclusion,
criminal acts or omissions do not include traffic violations.
LIMITS OF LIABILITY

The limit of liability shown on the declarations page for Medical Payments Coverage is
the most we will pay for each insured person injured in any one accident, regardless
of the number of:
claims made;
covered autos;
insured persons;
lawsuits brought;
vehicles involved in the accident; or
premiums paid.
No one will be entitled to duplicate payments under this policy for the same elements
of damages.
Any amount payable to an insured person under this Part II will be reduced by any
amount paid or payable for the same expense under Part lLiability To Others or Part
lllUninsured/Underinsured Motorist Coverage.
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If multiple auto policies issued by us are in effect for you, we will pay no more than the
highest limit of liability for this coverage available under any one policy.
UNREASONABLE OR UNNECESSARY MEDICAL EXPENSES

If an insured person incurs expenses for medical services that we deem to be unrea
sonable or unnecessary, we may refuse to pay for those expenses and contest them.
If the medical service provider sues the insured person because we refuse to pay
expenses for medical services that we deem to be unreasonable or unnecessary, we
will pay any resulting defense costs, and any resulting judgment against the insured
person, subject to the limit of liability for this coverage. We will choose the counsel.
We will also pay reasonable expenses, including loss of earnings up to $200 per day,
incurred at our request.
The insured person may not sue us for expenses for medical services we deem to
be unreasonable or unnecessary unless the insured person paid the entire disputed
amount to the medical service provider or the medical service provider has initiated
collection activity against the insured person for the unreasonable or unnecessary

expenses.
OTHER INSURANCE

If there is other applicable auto medical payments insurance, we will pay only our share
of the loss. Our share is the proportion that our limit of liability bears to the total of all
applicable limits. However, any insurance we provide for an insured person occupy
ing a vehicle or trailer, other than a covered auto, will be excess over any other auto
insurance providing payments for medical services.

PART IIIUNINSUREDIUNDERINSURED MOTOFIIST COVERA_E

INSURING AGREEMENTUNINSURED MOTORIST COVERAGE
If you pay the premium for this coverage, we will pay for damages that an insured
person is legally entitled to recover from the owner or operator of an uninsured motor
vehicle because of bodily injury:
1. sustained by an insured person;
2. caused by an accident; and
3. arising out of the ownership, maintenance or use of an uninsured motor vehicle.
INSURINGAGREEMENTUNDERINSURED MOTOHIST COVERAGE
If you pay the premium for this coverage, we will pay for damages that an insured per
son is legally entitled to recover from the owner or operator of an underinsured motor
vehicle because of bodily injury:
1. sustained by an insured person;
2. caused by an accident; and

d. that is a hit-and-run vehicle whose owner or operator cannot be identified and

3.

arising out of the ownership, maintenance, or use of an underinsured motor ve

hicle,

Any judgment or settlement for damages against an owner or operator of an uninsured

motor vehicle or an underinsured motor vehicle that arises out of a lawsuit brought
without our written consent is not binding on us.
ADDITIONAL DEFINITIONS

When used in this Part III:

1. Insured person" means:
a. you, a relative, or a rated resident;
b. any person while operating a covered auto with the permission of you, a rela
tive, or a rated resident;
c. any person occupying, but not operating, a covered auto; and
d. any person who is entitled to recover damages covered by this Part "I because
of bodily injury sustained by a person described in a., b.or c. above.
2. Underinsured motor vehicle means a land motor vehicle or trailer of any type
to which a bodily injury liability bond or policy applies at the time of the accident,
but the sum of the limits of liability for bodily injury under all applicable policies or
bonds:
a. is less than the coverage limit for Underinsured Motorist Coverage shown on
the declarations page; or
b. has been reduced by payments for bodily injury to persons injured in the
accident, other than an insured person, to less than the coverage limit for
Underinsured Motorist Coverage shown on the declarations page.
An underinsured motor vehicle does not include any vehicle or equipment:
a. owned by you, a relative, or a rated resident or furnished or available for the
regular use of you, a relative, or a rated resident;
b. owned by any governmental unit or agency;
0. operated on rails or crawler treads;
d. designed mainly for use olf public roads, while not on public roads;
e. while located for use as a residence or premises;
t. that isa covered auto; or
9. that is an uninsured motor vehicle.
3. Uninsured motor vehicle means a land motor vehicle or trailer of any type:
a. to which no bodily injury liability bond or policy applies at the time of the ac
cident;
b. to which a bodily injury liability bond or policy applies at the time of the acci
dent, but the bonding or insuring company:
(i) denies coverage; or
(ii) is or becomes insolvent;
c. to which a bodily injury liability bond or policy applies at the time of the ac
cident, but its limit of liability for bodily injury is less than the minimum limit of
liability for bodily injury specified by the financial responsibility law of the state
in which the covered auto is principally garaged; or

which strikes:
(i) you, a relative, or a rated resident;
(ii) a vehicle that you, a relative, or a rated resident are occupying; or
(iii) a covered auto;
provided that the insured person, or someone on his or her behalf, reports
the accident to the police or civil authority within 24 hours or as soon as prac
ticable atter the accident.
An uninsured motor vehicle does not include any vehicle or equipment:
a. owned or operated by a self-insurer under any applicable motor vehicle law,
except a self-insurer that is or becomes insolvent;
b owned by any governmental unit or agency;
c operated on rails or crawler treads;
d. designed mainly for use oft public roads, while not on public roads;
e while located for use as a residence or premises; or
t. that is an under-insured motor vehicle.

EXCL
N
EADTHE FOLLOWING EXCLUSIONS CAREFULLY. IF AN EX
CLUSION APPLIES, COVERAGE WILL NOT BE AFFORDED UNDERTHIS PART III.
Coverage under this Part III will not apply:
1. to bodily injury sustained by any person while using or occupying:
a. a covered auto while being used:
(i) to carry persons or property for compensation or a fee; or
(ii) for retail or wholesale delivery, including, but not limited to, the pickup,
transport or delivery of magazines, newspapers, mail or food.
This exclusion does not apply to shared-expense car pools; or
b. a motor vehicle that is owned by or available for the regular use of you, a rela
tive, or a rated resident.This exclusion does not apply to a covered auto that
is insured under this Part Ill;
2. to bodily injury sustained by you, a relative, or a rated resident while using any
vehicle, other than a covered auto, without the permission of the owner of the
vehicle or the person in lawful possession of the vehicle;
3. directly or indirectly to benefit any insurer or self-insurer under any of the following
or similar laws:
a. workers compensation law; or
b. disability benefits law;
4. to any punitive or exemplary damages; or
5. to bodily injury sustained by any person if that person or the legal representative
of that person settles without our written consent.
LIMITS OF IJABILTI'Y

The limit of liability shown on the declarations page for Uninsured/Underinsured

Motorist Coverage is the most we will pay regardless of the number of:
1. claims made;
2. coveredautos;
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insured persons;
lawsuits brought;
vehicles involved in the accident; or
premiums paid.

dilference between the damages sustained by the insured person and the sum of the
applicable bodily injury liability limits.

If your declarations page shows a split limit:

1. the amount shown for each persori is the most we will pay for all damages due to
bodily injury to one person; and
2. subject to the each person" limit, the amount shown for each accident is the most
we will pay for all damages due to bodily injury sustained by two or more persons
in any one accident.

The each persort limit of liability includes the total of all claims made for bodily injury
to an insured person and all claims of others derived from such bodily injury, includ
ing, but not limited to, loss of society, loss of companionship, loss of services, loss of
consortium, and wrongful death.

If the declarations page shows that combined single limit or CSL applies, the
amount shown is the most we will pay for the total oi all damages resulting from any
one accident. However, without changing this total limit of liability, we will comply with
any law that requires us to provide any separate limits.
The limits of liability for Uninsured Motorist Coverage under this Part IIIwill be reduced
by all sums:
1. paid because of bodily injury by or on behalf of any persons or organizations that
may be legally responsible;
2. paid under Part lLiabilityTo Others;
3. paid or payable because of bodily injury under any disability benefits coverage or
policy; and
4. paid or payable because of bodily injury under any of the following or similar laws:
a. workers compensation law; or
b. disability benefits law.

Any amount payable for damages under Underinsured Motorist Coverage shall be re
duced by all sums:
1. paid because of bodily injury by or on behalf of any persons or organizations that
may be legally responsible;
2. paid under Part lLiabilityTo Others;
3. paid or payable because of bodily injury under any disability benefits coverage or
policy; and
4. paid or payable because of bodily injury under any of the following or similar laws:
a. workers compensation law; or
b. disability benefits law.
However, it an insured person enters into a settlement agreement for an amount less
than the sum of the limits of liability under all applicable bodily injury liability bonds and
policies, our limit of liability for Underinsured Motorist Coverage shall not exceed the
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We will not pay under this Part III any expenses paid or payable under Part llMedical
Payments Coverage.

No one will be entitled to duplicate payments for the same elements of damages.

if multiple auto policies issued by us are in effect for you, we will pay no more than the
highest limit of liability for this coverage available under any one policy.
OTHER INSURANCE

If there is other applicable uninsured or underinsured motorist coverage, the amount of

damages which an insured person is entitled to recover shall not exceed the highest
limit for uninsured motorist coverage or underinsured motorist coverage provided under
any one of the applicable policies. We will pay only our share of the damages. Our
share is the proportion that our limit of liability bears to the total of all available coverage
limits. However, any insurance we provide with respect to a vehicle that is not a covered
auto will be excess over any other uninsured or underinsured motorist coverage.
PARTlVDAM

AVEHI LE

INSURINGAGREEMENTCOLLISION COVERAGE
If you pay the premium for this coverage, we will pay for sudden, direct and accidental
loss to a:
1. covered auto, including an attached trailer; or
2. non-owned auto;
and its custom parts or equipment, resulting from collision.
In addition, we will pay the reasonable cost to replace any child safety seat damaged in
an accident to which this coverage applies.
INSURING AGREEMENTCOMPREHENSIVE COVERAGE

It you pay the premium for this coverage, we will pay for sudden, direct and accidental
loss to a:
1. covered auto, including an attached trailer; or
2. non-owned auto;
and its custom parts or equipment, that is not caused by collision.

A loss not caused bycollision includes:

1. contact with an animal (including a bird);
2. explosion or earthquake;
3. fire;
13

malicious mischief or vandalism;

missiles or falling objects;
riot or civil commotion;
theft or larceny;
Windstorm, hail, water or flood; or
breakage of glass not caused bycollision.
In addition, we will pay for:
1. reasonable transportation expenses incuned by you ifa covered auto is stolen; and
2. loss of use damages that you are legally liable to pay ifa non-owned auto is stolen.
A combined maximum of $900, not exceeding $30 per day, will apply to these addi
tional benefits. The additional benefit for transportation expenses will not apply if you
purchased Rental Reimbursement Coverage for the stolen covered auto.
Coverage for transportation expenses and loss of use damages begins 48 hours after
you report the theft to us and ends the earliest of:
1. when the auto has been recovered and returned to you or its owner;
2. when the auto has been recovered and repaired;
3. when the auto has been replaced; or
4. 72 hours after we make an offer to settle the loss if the auto is deemed by us to be
a total loss.

We must receive written proof of transportation expenses and loss of use damages.
INSURINGAGREEMENTADDITIONAL CUSTOM PARTS
OR EQUIPMENT COVERAGE

We will pay for sudden, direct and accidental loss to custom parts or equipment on a
covered auto for which this coverage has been purchased.This coverage applies only
if you have purchased both Comprehensive Coverage and Collision Coverage for that
covered auto and the loss is covered under one of those coverages. This coverage
applies in addition to any coverage automatically provided for custom parts or equip
ment under Comprehensive Coverage or Collision Coverage.
INSURING AGREEMENTRENTAL REIMBURSEMENT COVERAGE

We will reimburse rental charges incurred when you rent an auto from a rental agency
or auto repair shop due to a loss to a covered auto for which Rental Reimbursement
Coverage has been purchased. This coverage applies only it you have purchased both
Comprehensive Coverage and Collision Coverage for that covered auto and the loss
is covered under one of those coverages.

it Rental Reimbursement Coverage applies, no other coverage under this policy for
rental expenses will apply.

Rental charges will be reimbursed beginning:

1. when the covered auto cannot be driven due to a loss; or
2. it the covered auto can be driven, when you deliver the covered auto to an auto
repair shop or one of our Service Centers for repairs due to the loss;
and ending the earliest of:
1. when the covered auto has been returned to you;
2. when the covered auto has been repaired;
3. when the covered auto has been replaced;
4 72 hours after we make an offer to settle the loss if the covered auto is deemed by
us to be a total loss; or
5. when you incur 30 days worth of rental charges.
You must provide us written proof of your rental charges to be reimbursed.
INSURING AGREEMENTLOANILEASE PAYOFF COVERAGE
If you pay the premium for this coverage, and the covered auto for which this cover
age was purchased is deemed by us to be a total loss, we will pay, in addition to any
amounts otherwise payable under this Part iv, the difference between:
1. the actual cash value of the covered auto at the time of the total loss; and
2. any greater amount the owner of the covered auto is legally obligated to pay under
a written loan or lease agreement to which the covered auto is subject at the time
of the total loss, reduced by:
a. unpaid finance charges or refunds due to the owner for such charges;
b. excess mileage charges or charges for wear and tear;
c. charges for extended warranties or refunds due to the owner for extended war
rarities;
d. charges for credit insurance or refunds due to the owner for credit insurance;
e. past due payments and charges for past due payments; and
f
collection or repossession expenses.

However, our payment under this coverage shall not exceed the limit of liability shown
on the declarations page. The limit of liability isa percentage of the actual cash value
of the covered auto at the time of the loss.
This coverage applies only if you have purchased both Comprehensive Coverage and
Collision Coverage for that covered auto and the loss is covered under one of those
coverages.

Additional fees or charges for insurance, damage waivers, optional equipment, fuel, or
accessories are not covered.

INSURING AGREEMENTPET INJURY COVERAGE

This coverage is limited to the each day limit shown on the declarations page for a
maximum of 30 days.

If you have purchased Collision coverage for at least one covered auto under your
policy, and it your pet sustains injury or death while inside a covered auto or non

14

15

owned auto at the time of a loss covered under Collision or Comprehensive coverage,
we will provide:
1. up to $1,000 for reasonable and customary veterinary fees incurred by you, a rela
tive, or a rated resident if your pet is injured in, or asa direct result of, the covered
loss; or
2. a $1,000 death benefit if your pet dies in, or as a direct result of, the covered loss,
less any payment we made toward veterinary expenses for your pet.
In the event of a covered loss due to the theft of a covered auto or non-owned auto,
we will provide the death benefit provided your pet is inside that auto at the time of the
theft and your pet is not recovered.

ADDITIONAL DEFINITIONS
When used in this Part IV:
1. Collision means the upset of a vehicle or its impact with anothervehicle crobject.
2. Custom parts or equipment means equipment, devices, accessories, en
hancements and changes, other than those that are offered by the manufacturer
specifically for that auto model, or that are installed by the auto dealership as part
of the original sale of a new auto, that:
a. are permanently installed or attached; and
b. alter the appearance or performance of the auto.
Mechanical parts" means operational parts on a vehicle that wear out over time
or have a finite useful life or duration typically shorter than the life of the vehicle as
a whole. Mechanical parts do not include external crash parts, wheels, paint, or
Windshields and other glass.
Non-owned auto means an auto that is not owned by or furnished or available
for the regular use of you, a relative, or a rated resident while in the custody of or
being operated by you, a relative, or a rated resident with the permission of the
owner of the auto or the person in lawful possession of the auto.
5. Your pet" means any dog or cat owned by you, a relative, or a rated resident.

10.
11.

W H E A D T H E FOLLOWING EXCLUSIONS CAREFULLY. IFANEX

CLUSION APPLIES, COVERAGE WILL NOT BE AFFORDED UNDER11-IIS PART IV.

Coverage under this Part IV will not apply for loss:

1. to any vehicle while being used:
a. to carry persons or property for compensation or a fee; or
b. for retail or wholesale delivery, including, but not limited to, the pidrup, transport
or delivery of magazines, newspapers, mail or food.
This exclusion does not apply to sharedexpense car pools;
to a non-owned auto while being maintainedor used by a person while employed
or engaged in any auto business;
to any vehicle resulting from, or sustained during practice or preparation for:
a. any pre-ananged or organized racing, stunting, speed or demolition contest or
activity; or
b. any driving activity conducted on a permanent or temporary racetrack or race
course;
16

12.

13.

to any vehicle for which insurance:

a. is afforded under a nuclear energy liability insurance contract; or
b. would be afforded under a nuclear energy liability insurance contract but for its
termination upon exhaustion of its limit of liability;
to any vehicle caused by an intentional act committed by or at the direction of you,
a relative, a rated resident, or the owner of a non-owned auto, even if the actual
damage is different than that which was intended or expected;
to a covered auto while it is leased or rented to others or given in exchange for
compensationThis exclusion does not apply to the operation ofa covered auto by
you, a relative, or a rated resident;
due to destruction or confiscation by governmental or civil authorities of any vehicle
because you, any relative, or any rated resident engaged in illegal activities;
to any vehicle that is due and confined to:
a. wear and tear;
b. freezing;
c. mechanical, electrical or electronic breakdown or failure; or
d. road damage to tires.
This exclusion does not apply if the damage results from the theft of a vehicle;
to portable equipment, devices, accessories, and any other personal effects that
are not permanently installed.This includes, but is not limited to:
a. tapes, compact discs, cassettes, DVDs, and other recording or recorded media;
b. any case or other container designed for use in storing or carrying tapes, com
pact discs, cassettes, DVDs, or other recording or recorded media;
0. any device used for the detection or location of radar, laser, or other speed
measuring equipment or its transmissions; and
d. CB radios, telephones, two-way mobile radios, DVD players, personal comput
ers, personal digital assistants, or televisions;
to any vehicle for diminution of value;
to any vehicle caused directly or indirectfy by:
a. war (declared or undeclared) or civil war;
b. warlike action by any military force of any government, sovereign, or other
authority using military personnel or agents. This includes any action taken to
hinder or defend against an actual or expected attack; or
c. insurrection, rebellion, revolution, usurped power, or any action taken by a gov
ernmental authority to hinder or defend against any of these acts;
to any vehicle caused directly or indirectly by:
a. any accidental or intentional discharge, dispersal or release of radioactive,
nuclear, pathogenic or poisonous biological material; or
b. any intentional discharge, dispersal or release of chemical or hazardous mate
rial for any purpose other than its safe and useful purpose; or
to any vehicle caused by, or reasonably expected to result from, a criminal act or
omission of you, a relative, a rated resident, or the owner of a non-owned auto.
This exclusion applies regardless of whether you, the relative, the rated resident,
or the owner of the non-owned auto is actually charged with, or convicted of, a
crime. For purposes of this exclusion, criminal acts or omissions do not include traf
fic violations.
17

LIMITS OF LIABILITY

To determine the amount necessary to repair or replace the damaged prop

erty as referred to in subsection 1., an adjustment may be made for betterment
or depreciation and physical condition on:
(i) batteries;
(ii) tires;
(iii) engines and transmissions, if the engine has greater than 80,000 miles;
and
(iv) any other mechanical parts that are nonfunctioning or inoperative.
We will not make an adjustment for the labor costs associated with the re
placement or repair of these parts.
9. The actual cash value is determined by the market value, age, and condition
of the vehicle at the time the loss occurs.
3. No deductible will apply to a loss to window glass when the glass is repaired in
stead of replaced.
4. Duplicate recovery for the same elements of damages is not permitted.
5. The following additional limits of liability apply to Pet injury coverage:
a. The most we will pay for all damages in any one loss is a total of $1,000 re
gardless of the number of dogs or cats involved.
b. if your pet dies in, or as a direct result of, a covered loss, we will provide a
death benefit of $1,000, less any payment we made toward veterinary ex
penses for your pet.
c. No deductible shall apply to this coverage.
i.

1. The limit of liability for loss to a covered auto, non-owned auto, or custom parts
or equipment is the lowest of:
a. the actual cash value of the stolen or damaged property at the time of the loss
reduced by the applicable deductible;
b. the amount necessary to replace the stolen or damaged property reduced by
the applicable deductible;
C.
the amount necessary to repair the damaged property to its ore-loss condition
reduced by the applicable deductible; or
d. the Stated Amount shown on the declarations page for that covered auto.
owever, the most we will pay for loss to:
a. custom parts or equipment is $1,000 unless you purchased Additional
Custom Parts or Equipment Coverage (ACPE). If you purchased ACPE, the
most we will pay is $1,000 plus the amount of ACPE you purchased.
b. a trailer is the limit of liability shown on the declarations page for that trailer.
It the trailer is not shown on the declarations page, the limit of liability is $500.
Payments for loss to a covered auto, non-owned auto, or custom parts or
equipment are subject to the following provisions:
a. It coverage applies to a non-owned auto, we will provide the broadest cover
age applicable to any covered auto shown on the declarations page.
b. If you have elected a Stated Amount for a covered auto, the Stated Amount
is the most we will pay for all loss to that covered auto, including its custom
parts or equipment.
Coverage for custom parts or e q u i p t h will not cause our limit of liability
for loss to an auto under this Part IV to be increasedto an amount in excess of
the actual cash value of the auto, including its custom parts or equipment.
In determining the amount necessary to repair damaged property to its pre
loss condition, the amount to be paid by us:
(i) will not exceed the prevailing competitive labor rates charged in the area
where the property is to be repaired and the cost of repair or replacement
parts and equipment, as reasonably determined by us; and
(ii) will be based on the cost of repair or replacement parts and equipment
which may be new, reconditioned, remanutactured or used, including, but
not limited to:
(a) original manufacturer parts or equipment; and
(b) nonoriginal manufacturer parts or equipment.
To determine the amount necessary to repair or replace the damaged prop
erty as referred to in subsection 1., the total cost of necessary repair or replace
ment may be reduced by unrepaired prior damage. Unrepaired pn'or damage
includes broken, cracked or missing parts; rust; dents; scrapes; gouges; and
peeling paint. The reduction for unrepaired prior damage is the cost of labor,
parts and materials necessary to repair or replace damage, deterioration, de
fects, or wear and tear on exterior body parts, windshields and other glass,
wheels, and paint, that existed prior to the accident and that is eliminated as a
result of the repair or replacement of property damaged in the loss.

PAYMENT OF LOSS
We may, at our option:
1. pay for the loss in money; or
2. repair or replace the damaged or stolen property.
At our expense, we may return any recovered stolen property to you or to the address
shown on the declarations page, with payment for any damage resulting from the theft.
We may keep all or part of the property at the agreed or appraised value.

We may settle any loss with you or the owner or lienholder of the property.
No BENEFITTO BAILEE

Coverage under this Part IV will not directly or indirectly benefit any carrier or other
bailee for hire.
LOSS PAYABLE CLAUSE

Payment under this Part IV for a loss to a covered auto will be made according to
your interest and the interest of any lienholder shown on the declarations page or
designated by you. At our option, payment may be made to both jointly, or to either
separately. However, it the covered auto is not a total loss, we may make payment to
you and the repairer of the auto.

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19

The Iienholders interest will not be protected:

1. where fraud, misrepresentation, material omission, or intentional damage resulting
in a denial of coverage by us has been committed by or at the direction of you or
any person seeking coverage; or
2. where the loss is othenrvise not covered under the terms of this policy.
If this policy is cancelled, nonrenewed or voided, the interest of any lienhoider under this
agreement will also terminate.
OTHER SOURCES OF RECOVERY

If other sources of recovery also cover the loss, we will pay only our share of the loss.
Our share is the proportion that our limit of liability bears to the total of all applicable
limits. However, any insurance we provide for a non-owned auto, or trailer not shown
on the declarations page, will be excess over any other collectible source of recovery
including, but not limited to:
1. any coverage provided by the owner of the non-owned auto or trailer;
2. any other applicable physical damage insurance; and
3. any other source of recovery applicable to the loss.

APPRAISAL
If we cannot agree with you on the amount of a loss, then we or you may demand
an appraisal of the loss. Vifithin 30 days of any demand for an appraisal, each party
shall appoint a competent appraiser and shall notify the other party of that appraisers
identity. The appraisers will determine the amount of loss. If they fail to agree, the dis
agreement will be submitted to a qualified umpire chosen by the appraisers. If the two
appraisers are unable to agree upon an umpire within 15 days, we or you may request
that a judge of a court of record, in the county where you reside, select an umpire.The
appraisers and umpire will determine the amount of loss. The amount of loss agreed
to by both appraisers, or by one appraiser and the umpire, will be binding. You will pay
your appraisers fees and expenses We will pay our appraisers tees and expenses. All
other expenses of the appraisal, including payment of the umpire if one is selected, will
be shared equally between us and you. Neither we nor you waive any rights under this
policy by agreeing to an appraisal.

PART VROADSIDE ASSISTANCE COVERAGE

ADDI110NAL DEFINITIONS
When used in this Part V:
1. Covered disabled auto" means a covered auto for which this coverage has
been purchased that sustains a covered emergency.
2. Covered emergency means a disablement that is a result of:
mechanical or electrical breakdown;
battery failure;
insufficient supply of fuel, oil, water, or other fluid;
flat tire;
lock-out; or
entrapment in snow, mud, water or sand within 100 feet of a road or highway.

E
D THE FOLLOWING EXCLUSIONS CAREFULLY. IF AN EX
CLUSION APPLIES, COVERAGE WILL NOT BE AFFORDED UNDERTHIS PARTV.

Coverage under this Part V will not apply to:

1. more than three covered emergencies for any single covered auto in a six-month
period;
.
2. the cost of purchasing parts, fluid, lubricants, fuel, or replacement keys, or the labor
to make replacement keys;
installation of products or material not related to the disablement;
labor not related to the disablement;
labor ona covered disabled auto for any time period in excess of 60 minutes per
disablement;
towing or storage related to impoundment, abandonment, illegal parking, or other
violations of law;
assistance with jacks, levelers, airbags or awnings;
labor or repair work performed at a service station, garage, or repair shop;
auto storage charges;
0. disablement that occurs on roads not regularly maintained, sand beaches, open
fields, or areas designated as not passable due to construction, weather, or earth
movement;
11. mounting or removing of snow tires or chains;
12. tire repair;
13. disablement that results from an intentional or willful act or action by you, a rela
tive, or the operator of a covered disabled auto; or
14. atrailer.

INSURING AGREEMENT
UNAUTHORIZED SERVICE PROVIDER

If you pay the premium forthis coverage, we will pay for our authorized service represen
tative to provide the following services when necessary due to a covered emergency:
1. towing of a covered disabled auto to the nearest qualified repair facility; and
2. labor on a covered disabled auto at the place of disablement.
Ifa covered disabled auto is towed to any place other than the nearest qualified repair
facility, you will be responsible for any additional charges incurred.

When service is rendered by a provider in the business of providing roadside assistance

and towing services, other than one of our authorized service representatives, we will
pay only reasonable charges, as determined by us, for:
1. towing of a covered disabled auto to the nearest qualified repair facility; and
2. labor on a covered disabled auto at the place of disablement;
which is necessary due to a covered emergency.

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21

OTHER INSURANCE

of the United States of America, or a province or territory of Canada, or while a covered

auto is being transported between their ports.

Any coverage provided under this Part V for service rendered by an unauthorized ser
vice provider will be excess over any other collectible insurance or towing protection
coverage.
PART VlDUTIES INCASE OFAN ACCIDENT OR LOSS
For coverage to apply under this policy, you or the person seeking coverage must
promptly report each accident or loss even if you or the person seeking coverage is not
at fault. You or the person seeking coverage must provide us with all accident or loss
information, including time, place, and how the accident or loss happened. You or the
person seeking coverage must also obtain and provide us the names and addresses of
all persons involved in the accident or loss, the names and addresses of any witnesses,
and the license plate numbers of the vehicles involved.

If you or the person seeking coverage cannot identify the owner or operator of a vehicle
involved in the accident, or if theft or vandalism has occurred, you orthe person seeking
coverage must notify the police within 24 hours or as soon as practicable.
A person seeking coverage must:
1. cooperate with us in any matter concerning a claim or lawsuit;
2. provide any written proof of loss we may reasonably require;
3. allow us to take signed and recorded statements, including sworn statements and
examinations under oath, which we may conduct outside the presence of you or
any other person seeking coverage, and answer all reasonable questions we may
ask as often as we may reasonably require;
4. promptly call to notify us about any claim or lawsuit and send us any and all legal
papers relating to the claim or suit;
5. attend hearings and trials as we require;
6. take reasonable steps after a loss to protect the covered auto, or any other vehicle
for which coverage is sought, from further loss. We will pay reasonable expenses
incurred in providing that protection. If failure to provide such protection results in
further loss, any additional damages will not be covered under this policy;
7 allow us to have the damaged covered auto, or any other damaged vehicle for
which coverage is sought, inspected and appraised before its repair or disposal;
8. submit to medical examinations at our expense by doctors we select as often as
we may reasonably require; and
9. authorize us to obtain medical and other records.

CHANGES

This policy contract, your insurance application (which is made a part of this policy as if
attached hereto), the declarations page, and all endorsements to this policy issued by
us, contain all the agreements between you and us. Subject to the following, the terms
of this policy may not be changed or waived except by an endorsement issued by us.

The premium for this policy is based on information we received from you and other
sources. You agree to cooperate with us in determining if this information is correct and
complete, and to promptly notify us if it changes during the policy period. If this informa
tion is determined by us to be incorrect, incomplete, or if it changes during the policy
period, you agree that we may adjust your policy information and premium accordingly.
Changes that may result in a premium adjustment are contained in our rates and rules.
These include, but are not limited to, you, a relative, or a rated resident obtaining a
drivers license or operators permit, or changes in:
1. the number, type or use classification of covered autos;
the persons who regularly operate a covered auto;
the persons of legal driving age residing in your household;
the residents in your household;
an operators marital status;
your mailing address and your residence address;
the principal garaging address of any covered auto;
coverage, deductibles, or limits of liability; or
rating territory or discount eligibility.
The coverage provided in your policy may be changed only by the issuance of a new
policy or an endorsement by us. However, if during the policy period we broaden any
coverage afforded under the current edition of your policy without additional premium
charge, that change will automatically apply to your policy as of the date the coverage
change is implemented in your state.

If you ask us to delete a vehicle from this policy, no coverage will apply to that vehicle
as of the date and time you ask us to delete it.

DUTYTO REPORT CHANGES

This policy applies only to accidents and losses occurring during the policy period
shown on the declarations page and that occur within a state, territory or possession

You must promptly report to us all changes, including additions and deletions, in policy
information. Further, you must report to us certain changes no later than 30 days after
the change occurs. These are changes to:
your mailing address or your residence address;
the principal garaging address of any covered auto;
the residents in your household;
the persons of legal driving age residing in your household;

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23

PART VIIGENERAL PROVISIONS

POLICY PERIOD AND TERRITORY

5. the persons who regularly operate a covered auto;

6. an operators marital status; or
Z the drivers license or operators permit status of you, a relative, ora rated residerrL

Your failure to comply with this duty, where material to the risk of loss, may result in our
denial of coverage for a claim.

SETTLEMENT OF CLAIMS
We may use estimating, appraisal, or injury evaluation systems to assist us in adjust
ing claims under this policy and to assist us in determining the amount of damages,
expenses, or loss payable under this policy. Such systems may be developed byus or a
third party and may include computer software, databases, and specialized technology.

TERMS OF POUCY CONFORMEDTO STATUTES

If any provision of this policy fails to conform to the statutes of the state listed on your
application as your residence, the provision shall be deemed amended to conform to
such statutes. All other provisions shall be given full force and effect. Any disputes as to
the coverages provided or the provisions of this policy shall be governed by the law of
the state listed on your application as your residence.

conceal or misrepresent any material fact or circumstance; or

3. engage in fraudulent conduct;
in connection with a requested change we may void the policy or reform it as it existed
immediately prior to the requested change. We may do this at any time, including after
the occurrence of an accident or loss.
2.

When we have not voided or reformed the policy, we may still deny coverage for an
accident or loss if you, in connection with the policy application, in connection with any
requested change, or at any time during the policy period, have concealed or misrepre
sented any material fact or circumstance or engaged in fraudulent conduct and that con
cealment, misrepresentation, or fraudulent conduct was material to a risk we assumed.
However, if we certify this poliql as proof of financial responsibility, no statement made
by or on behalf of an insured person shall void coverage under Part lLiability To
Others up to the minimum limits required by the Iowa Motor Vehicle Financial and
Safety Responsibility Act if the accident occurs before we notify you that the policy is
void. If we void this policy, you must reimburse us if we make a payment under Part
lLiability To Others.

We may deny coverage for an accident or loss if you or a person seeking coverage has
conwaled or misrepresented any material fact or circumstance, or engaged in fraudu
lent conduct, in connection with the presentation or settlement of a claim.

TRANSFER OF INTEREST

PAYMENT OF PREMIUM AND FEES

The rights and duties under this policy may not be transferred to another person without
our written consent. However, if a named insured shown on the declarations page
dies, this policy will provide coverage until the end of the policy period for the legal rep
resentative of the named insured, while acting as such, and for persons covered under
this policy on the date of the named insureds death.

FRAUD OR MISREPRESENTATION
This policy was issued in reliance upon the information provided on your insurance
application. We may void this policy at any time, including after the occurrence of an
accident or loss, if you:
1. made incon'ect statements or representations to us with regard to any material fact
or circumstance;
2. concealed or misrepresented any material fact or circumstance; or
3. engaged in fraudulent conduct;
at the time of application. This means that we will not be liable for any claims or dam
ages that would otherwise be covered.
Any changes we make at your request to this policy after inception will be made in reli
ance upon information you provide. If you:
1. make incorrect statements or representations to us with regard to any material fact
or circumstance;
24

If your initial premium payment is by check, draft, electronic funds transfer, or simi
lar form of remittance, coverage under this policy is conditioned on payment to us by
the financial institution. If the financial institution upon presentment does not honor the
ched<, draft, electronic funds transfer, or similar lcrrn of remittance, this policy may, at
our option, be deemed void from its inception. This means we will not be liable under
this policy for any claims or damages that would othewvise be covered if the check,
draft, electronic funds transfer, or similar form of remittance had been honored by the
financial institution. Any action by us to present the remittance for payment more than
once shall not affect our right to void this policy.
in addition to premium, fees may be charged on your policy. We may charge fees for
installment payments, late payments, and other transactions. Payments made on your
policy will be applied first to fees, then to premium due.
CANCELLATION

You may cancel this policy during the policy period by calling or writing us and stating
the future date you wish the cancellation to be effective.
We may cancel this policy during the policy period by mailing a notice of cancellation
to the named insured shown on the declarations page at the last known address ap
pearing in our records.
25

We will give at least 10 days notice of cancellation if the policy is cancelled for nonpay
ment of premium.
We will give at least 30 days notice of cancellation in all other cases.

We may cancel this policy for any reason if the notice is mailed within the first 59 days
of the initial policy period.
After this policy is in effect for more than 59 days, or if this is a renewal or continuation
policy, we may cancel only for one or more of the following reasons:
1. nonpayment of premium;
2. material misrepresentation or fraud by you with respect to any material fact in the
procurement, continuation, change or renewal of this policy;
3. material misrepresentation orfraud in the submission of any claim underthis policy;
4. you or any operator who either resides in your household or customarily operates
a covered auto has had their driver's license suspended or revoked during the
policy period or, if this is a renewal policy, during its policy period or the 180 days
immediately preceding its effective date;
5. you or any operator who either resides in your household or customarily operates
a covered auto has, during the policy period, engaged in a competitive speed
contest while operating a covered auto;
6. you or any operator who either resides in your household or customarily operates
a covered auto has, during the 36 months immediately preceding the notice of
cancellation or nonrenewal of this policy, been convicted of or forfeited bail for any
of the following:
a. criminal negligence resulting in death, homicide, or assault, and arising out of
the operation of a motor vehicle;
b. operating a motor vehicle while intoxicated or while under the influence of a
drug; or
c. a violation of Iowa Code Section 321.261;
2 any violation of the terms or conditions of this policy; or
8. any other reason permitted bylaw.
Proof of mailing will be sufficient proof of notice. If this policy is cancelled, coverage will
not be provided as of the effective date and time shown in the notice of cancellation. For
purposes of cancellation, this policy is neither severable nor divisible. Any cancellation
will be effective for all coverages for all persons and all vehicles.

CANCELLATION REFUND
Upon cancellation, you may be entitled to a premium refund. However, our making or
offering of a refund is not a condition of cancellation.
If we cancel this policy for a reason other than nonpayment of premium, any refund
will be computed on a daily pro rata basis. The effective date of cancellation shown in a
notice will be the end of the policy period.
26

If cancellation is at your request, or if cancellation is for nonpayment of premium, any

refund due will be computed on a 90% of a daily pro rata basis. This is a daily, acceler
ated method of calculating short rate earned premium on cancellations. Earned pre
mium is calculated on a daily basis.

Vinten you renew this policy we will waive our right under the policy to calculate can
cellation refunds on a 90% of a daily pro rata basis; instead, any refund of premium
following a cancellation applicable to the renewal policy will be calculated on a daily pro
rata basis.

NONRENEWAL
If neither we nor one of our affiliates offers to renew or continue this policy, we will mail
notice of nonrenewal to the named insured shown on the declarations page at the
last known address appearing in our records. Proof of mailing will be sufficient proof of
notice. Notice will be mailed at least 30 days before the end of the policy period.

AUTOMATIC TERMINATION
Ifwe or an affiliate offers to renew or continue this policy and you or your representative
does not accept, this policy will automatically terminate at the end of the current policy
period. Failure to pay the required renewal or continuation premium when due will mean
that you have not accepted our offer.

If you obtain other insurance on a covered auto, any similar insurance provided by this
policy will terminate as to that covered auto on the effective date of the other insurance.
If a covered auto is sold or transferred to someone other than you or a relative, any
insurance provided by this policy will terminate as to that covered auto on the effective
date of the sale or transfer.
LEGAL ACTION AGAINST US

We may not be sued unless there is full compliance with all the terms of this policy.
We may not be sued for payment under Part |Liability To Others until the obligation of
an insured person under Part I to pay is finally determined either by judgment after trial
against that person or by written agreement of the insured person, the claimant, and us.
No one will have any right to make us a party to a lawsuit to determine the liability of an
insured person.
If we retain salvage, we have no duty to preserve or othenivise retain the salvage for any
purpose, including evidence for any civil or criminal proceeding.

27

OUR RIGHTSTO RECOVER PAYMENT

We are entitled to the rights of recovery that the insured person to whom payment was
made has against another, to the extent of our payment. That insured person may be
required to sign documents related to the recovery and must do whatever else we re
quire to help us exercise those recovery rights, and do nothing after an accident or loss
to prejudice those rights.
When an insured person has been paid by us and also recovers from another, the
amount recovered will be held by the insured person in trust for us and reimbursed to
us to the extent that the total amount recovered from all sources exceeds the damages
sustained, limited to the amount of our payment. If we are not reimbursed, we may
pursue recovery of that amount directly against that insured person.

If an insured person recovers from another without our written consent, the insured
person's right to payment under any affected coverage will no longer exist.
If we elect to exercise our rights of recovery against another, we will also attempt to
recover any deductible incurred by an insured person under this policy unless we are
specifically instructed by that person not to pursue the deductible. We have no obligation
to pursue recovery against another for any loss not covered by this policy.
We reserve the right to compromise or settle the deductible and property damage
claims against the responsible parties for less than the full amount. We also reserve the
right to incur reasonable expenses and attorney fees in pursuit of the recovery.

It the total recovery is less than the total of our payment and the deductible, we will re
duce reimbursement of the deductible based on the proportion that the actual recovery
bears to the total of our payment and the deductible. Reimbursement of the deductible
will not be reduced by a proportionate share of collection expenses and attorney fees
incurred in connection with these recovery efforts unless an outside attorney is retained
to collect such recovery. In that case, there will bea deduction for a pro rata share of the
allocated loss adjustment expense.
These provisions will be applied in accordance with state law.
JOINT AND INDIVIDUAL INTERESTS

If there is more than one named insured on this policy, any named insured may cancel
or change this policy The action of one named insured will be binding on all persons
provided coverage under this policy.

BANKRUPTCY
The bankruptcy or insolvency of an insured person will not relieve us of any obligations
under this policy.
28

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